Gig Economy Workers: Financial Services and Benefits Trends and Opportunities
The Financial Services Market: Targeting Gig Economy Workers helps solve that riddle by providing several ways to measure Gig Economy employment, which vary in scope, including the Non-Benefit Worker, The Side Gig Worker, Second Jobbers, and Microbusiness Employees
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Report Overview
Welcome to the Gig Economy, where independent work arrangements, temporary and/or on-demand employment trends, working more than one “gig” at one time, globalization, digitization, work-at-home trends, and the gradual loss of employment benefits have converged to significantly impact the nature of employee-employer relationships and spur evolving ways to meet their needs.
For market participants, the first challenge concerns identifying which employed individuals are members of the Gig Economy and how to define who they are—especially when many have argued that the U.S. Bureau of Labor Statistics has under-represented the number of Gig Economy workers—and as reported by the Wall Street Journal (January 7, 2019)—questions regarding its impact are not settled.
Indeed, the pool of employed persons affected by Gig Economy trends is as narrow or wide as the definitions applied.
What's in This Report?
The Financial Services Market: Targeting Gig Economy Workers helps solve that riddle by providing several ways to measure Gig Economy employment, which vary in scope, including the Non-Benefit Worker, The Side Gig Worker, Second Jobbers, and Microbusiness Employees, as well as Those Working for Others vs. Those Working for Self, including Consultant/Contractors and Self-Employed Sole Proprietors.
By one analyzed measure, in a given month, U.S. adults complete more than 300 million paid assignments, underscoring not only the breadth of gig-related employment but the related opportunities to serve this shifting employment landscape. Report analysis substantiates the growth of key gig-related employment trends over time and provided related demographic insights (ranging from age and household income to occupation and marital/spousal work arrangements). The report also identifies market opportunities related to alternative financial services, tax services and related financial management tools, prepaid cards, and workforce management solutions.
This report identifies and analyzes members of the Gig Economy, a term characterized by independent work arrangements, temporary and/or on-demand employment trends, working more than one “gig” at one time, globalization, digitization, work-at-home trends, and the gradual loss of employment benefits. The report also identifies market opportunities related to alternative financial services, tax services and related financial management tools, prepaid cards, and workforce management solutions.
Packaged Facts provides several ways to measure Gig Economy employment and related benefits trends, which vary in scope:
- Non-Benefit Workers. The broadest definition in this report, a non-benefit worker is employed by someone else but does not receive paid employment benefits.
- Side Gig Workers. Side Gig Workers are defined in this report as adults who have been paid for occasional work activities or side jobs that fall outside of activities performed as part of their main jobs.
- Working for Self. This report includes three types of “self-employed” workers: self-employed/sole-proprietors, partners in partnerships, and consultant/contractors.
- Consultants/Contractors. These adults work for themselves in the capacity of consultant/contractors, most commonly characterized as 1099-MISC workers.
- Self-Employed Sole Proprietors. Self-employed sole proprietors work for themselves in a company where they are the only employee.
- Second Jobbers. Second Jobbers are those who have a second job in addition to their main job. Some overlap may exist between Second Jobbers and Side Gig Workers; however, second jobs include traditional part-time positions that are not included as side gigs.
- Microbusiness Employees. These adults work for companies having between 1-4 employees.
- Executive Summary
- Report Scope
- Report Summary
- Overview
- Non-Benefit Workers
- Side Gig Workers
- Serving the Needs of the Gig Economy Worker
- Overview
- Welcome to the Gig Economy
- Gig Economy Membership: Narrow Scope to Broad Scope
- By the Numbers: 306 Million Jobs
- Table | U.S. Adults: Employment Status, Second Jobs, and Side Gig Employment, 2017 (millions and percent)
- A Macro-Picture: 2007-2018 Employment Trends
- Table | Percent Share of Adult Population Employed Full Time and Part Time, and Percent Share of Spouses Emp
- Self-Employment Trends
- Table | Percent Share of Adults Employed by Others and by Themselves, 2007-2018
- Microbusiness and 1-Employee Company Employment Trends
- Table | Percent Share of Adults and Employed Adults, by Company Size, 2007-2018
- Non-Benefit Workers
- 2007-2019 trends
- Introduction
- Measuring the Impact of the Gig Economy: A Broad Approach
- Share of Working Households without Employment Benefits Increases
- Table | Working Households: Population and Share Having Employment Benefits, 2007-2019 (in millions and perc
- 41% of Employed Core Household Members Are Non-Benefit Workers
- Table | Employed Core Household Members: Population and Share Having Employment Benefits, 2007-2019 (in mill
- Share of Households and Core Household Members Classified as Working for Self on the Rise
- Table | Working Households: Working for Others vs. Working for Self, by Population and Share, 2007-2019 (in
- Table | Working Core Household Members: Working for Others vs. Working for Self, by Population and Share, 20
- Working for Others: Benefits Trends
- Table | "Working for Others" Households: Population and Share Having Employment Benefits, 2007-2019 (in mill
- Table | Core Household Members Employed by Others: Population and Share Having Employment Benefits, 2007-201
- Working for Self: Benefits Trends
- Table | "Working for Self" Households: Population and Share with Employment Benefits, 2007-2019 (in millions
- Table | Core Household Members Working for Self: Population and Share with Employment Benefits, 2007-2019 (i
- Presence and Degree of Benefits
- Introduction
- Only 27% of Consultant/Contractors Have Paid Employment Benefits
- Table | Paid Employment Benefits at Main Job, by Type of Benefit and Employment Status, 2017 (in millions an
- Benefits Coverage Varies Significantly by Occupation and Industry
- Table | Share and Population of Workers Having Benefits at their Main Job: Top 15 Industries, 2017 (in milli
- Table | Share and Population of Workers Having Benefits at their Main Job: Top 15 Occupations, 2017 (in mill
- Government Employees Lead Private Sector and Self-Employed
- Table | Share and Population of Workers Having Benefits at their Main Job, by Employer Type, 2017 (in millio
- On-Demand Employees
- Introduction
- A Growing Trend?
- Table | Work Day Schedule Continuity, by Employment Status, 2017 (in millions and percent)
- Skewed Toward Non-Benefit Employees and Shaping Full-Time Employment Trends
- Table | Work Week Schedule Continuity, by Employment Status and Benefits Status, 2017 (in millions and perce
- Timing of Advance Notice Shortest Among Full-Time Employees
- Table | On-Demand Employees: Degree of Advance Scheduling Notice, by Employment Status, 2017 (in millions an
- 2007-2019 trends
- Side Gig Workers
- Introduction
- The Side Gig Worker
- Table | The Side Gig Worker: Population, by Side Gig, 2017 (in millions and percent)
- Side Gig Worker Employment Overlap
- Table | Employed Adults, Side Gig Workers, and Side Gig Work among Employed/Not Employed, by Age, 2017 (in m
- Table | Employed Adults, Side Gig Workers, and Side Gig Work among Employed/Not Employed, by HH Income, 2017
- Side Gig Work: Old Economy vs. New Economy
- Table | Side Gig Workers: New Economy and Old Economy, by Age and Side Gig, 2017 (in millions and percent)
- Table | Side Gig Workers: New Economy and Old Economy, by HH Income and Side Gig, 2017 (in millions and perc
- Side Gig Workers: Employment and Benefit Status
- Table | Side Gig Workers: Employment and Benefit Status, by Age, 2017 (in millions and percent)
- Table | Side Gig Workers: Employment and Benefit Status, by HH Income, 2017 (in millions and percent)
- Table | Side Gig Workers: Employment and Benefit Status, by Marital Status, 2017 (in millions and percent)
- Side Gig Cross-Working
- Table | New Economy Side Gigs: Cross-Working New Economy and Old Economy Side Gigs, by Gig, 2017 (in million
- Table | Old Economy Side Gigs: Cross-Working New Economy and Old Economy Side Gigs, by Gig, 2017 (in million
- Reasons for Performing Side Gigs
- Table | Reasons for Performing Side Gigs, 2017
- Side Gigs: Time Allotment; Significance and Regularity of Financial Contribution
- Table | Side Gigs: Hours Worked, Share of Income, Regular and Significant Source of Income, by Employment St
- Serving the Needs of the Gig Economy Worker
- Alternative Financial Services
- Table | Side Gig Workers: Alternative Financial Services Usage, by Type and Side Gig, 2017 (percent)
- Prepaid Cards
- Contract and on-demand employed
- Table | Employer Payment Methods, by Employee Work Day Schedule Continuity, Employment Status, and Selected
- Side Gig Workers
- Contract and on-demand employed
- Tax Services and Beyond
- Tax Preparation Method Usage Trends: Microbusinesses and Sole Proprietors
- Table | Microbusiness Employees: Tax Preparation Method Used, 2008-2018 (percent)
- Table | Self-Employed Sole Proprietors: Tax Preparation Method Used, 2008-2018 (percent)
- Financial Management Tools
- Table | Final Management Tool Usage, by Type, Employment Status, and Side Gig Work Status, 2017 (in millions
- Budgeting/Spend Tracking Tools
- Table | Budgeting Tools, by Type, Employment Status, and Side Gig Work Status, 2017 (in millions and percent
- Tax Preparation Method Usage Trends: Microbusinesses and Sole Proprietors
- Alternative Financial Services
- Appendix
- Methodology
- Consumer Survey Methodology
- Key Sources
- General Tables
- Table | The Adult Population vs. Side Gig Workers, by Demographic, Gig, 2017 (percent)
- Population Estimates
- Generations
- Table | U.S. Generations, 2018
- Abbreviations
- Table | Report Abbreviations and Acronyms, 2019
- Terms and Definitions
- Methodology